How Whole Life Insurance Works

Everyone who has people who rely on them needs to have a life insurance policy. Two main kinds are available: term life insurance and whole life. Term life insurance is only valid for several years. After that time, it will expire. However, a whole life policy works very differently. Many aspects of these policies are unique and not found in term policies. Call us at Alloy Insurance Partners in Dallas, TX, if you need life insurance.

No Term, No Expiration

A whole life policy is there for your whole life. It’s a policy that doesn’t expire and can stay in effect no matter how old you get. It will remain active if you keep paying to keep your policy. Because it never expires, you never have to worry about getting another life insurance policy later, as many people have to do when they have term life policies. This can bring policyholders a lot of peace of mind. 

Cash Value

Another major benefit of this type of life insurance is that the policy will slowly build up a cash value. Throughout the policy, the insurance company invests the amount you pay for premiums and makes a profit from those investments. A small percentage of that profit becomes available to you as a cash value you can borrow against when needed. This can also bring peace of mind because policyholders know they will have access to important funds if they have a financial emergency later. 

Get Life Insurance 

Having life insurance to leave something behind when you’re gone is essential. To get started with a policy, call Alloy Insurance Partners in Dallas, TX.

Life Insurance Options

Our agents at Alloy Insurance Partners, serving the Dallas, TX area know and understand the importance of life insurance. While no one likes to think of what will happen when they die, it is imperative that you have the peace of mind that comes with an appropriate life insurance policy while you are alive.

The Importance of Life Insurance

Suppose you die unexpectedly and have a life insurance policy in place. In that case, your beneficiaries and loved ones will be saved from the stress and worry of how to pay for your funeral, along with all the regular bills, such as the mortgage, car payments, and even college tuition for your kids. By having a good life insurance policy in place, your family can grieve their loss without having the added stress of worrying about how they will survive financially.

Life Insurance Options

There is a variety of different types of life insurance policies that you can choose from based on what will work best for you and your situation. Read on for a detailed list of the three most common types of life insurance policies.

Whole Life Insurance

A whole life insurance policy includes universal life, whole life, and variable life insurance. These types of insurance will pay out a certain amount of money to your beneficiaries when you die and have a cash value component to them.

Term Life Insurance

This type of life insurance is the most affordable policy but is only in effect during the term you sign up for. The most common terms are 10, 20, and 30 years. You get to choose the length of the term of your policy and can renew it when the term expires. A death benefit will be paid out to your loved ones if you die during the term that the policy is in effect.

Universal Life Insurance

Universal life insurance is the most popular type of policy since you can borrow from it while you are still alive to pay off large bills, such as your mortgage or vehicle. This will provide you with peace of mind in knowing that your family is secure financially before you pass away. This policy will also pay out a death benefit to your loved ones after you pass away.

Contact Alloy Insurance Partners

Contact the life insurance specialists today at Alloy Insurance Partners serving the Dallas, TX area to get your life insurance policy started!

Should I get a whole life or term life insurance policy?

When it comes to life insurance, many people here in the Dallas, TX area are faced with the decision of whether to go with a whole life or term life policy. The answer depends on your needs, but there are some pros and cons from us at Alloy Insurance Partners for each type of policy that you should consider. 

Whole life insurance enables you to build cash value over time which can be accessed in the future, has a guaranteed death benefit, and will typically remain in effect until age 100. It also provides potential tax advantages throughout the life of the policy. The downside is that it is more expensive than a term life policy and may not provide enough coverage for someone who only needs coverage for a certain period. 

Term life insurance is typically less expensive than whole life and offers coverage for a specified period. It also has no cash value and no tax benefits while you have the policy in force. However, this type of policy can cover significant financial losses if something were to happen during the term, and it provides peace of mind knowing that your loved ones would be taken care of if anything were to happen to you. 

Ultimately, deciding between these two policies is up to you based on your specific needs and budget. Consider researching both policies further to make an informed decision regarding protecting yourself and your family’s financial future. For more information, give us at Alloy Insurance Partners a call today. We are proud to serve the Dallas, TX area.

Why It’s Important for the Self-Employed to Get Life Insurance

Owning your own business means you will have considerations different from those who work under an employer’s auspices. As such, obtaining a life insurance policy can help ensure the longevity of your business, providing ongoing income for your beneficiaries. 

During the transition period, it is easy to slip into fiscal disorganization as roles shift and a successor takes over operations. Your indemnification can help smooth over the difficulties by ensuring sufficient capital to continue making sure key individuals are adequately compensated. 

While there is no governmental requirement that Dallas, TX residents obtain life insurance, it is an essential part of estate planning that your Alloy Insurance Partners agent can tailor to suit your needs. Such protection can alleviate the stress of financing immediate expenses, such as burial and legal necessities. 

Your dependents likely won’t benefit from a pension or 401K, and they may be required to pay outstanding accounts related to your company and may need to settle on real estate negotiations. There may be shares that your beneficiaries wish to acquire in a buy-sell agreement. Personal housing and other debts can also come from your life insurance settlement. 

It’s vital that those who depend on you be able to establish themselves as independent of the business if that is what they want. An insurance policy gives them leverage to not rely on board members or shareholders to make decisions for them and protects them from being taken advantage of. 

Alloy Insurance Partners work hard to ensure Dallas, TX residents have access to the indemnification products they need. We look forward to doing business with you and invite you to contact us with any questions you may have. 

Term or Perm? Which Life Insurance Should You Buy?

When you visit Alloy Insurance Partners, serving Dallas, TX, for life insurance, you will have a wide array of options. Some will suit your current situation better than others.

Term or Perm

The first big question to address – term or perm? – it centers around whether you want coverage for just a few years or a lifetime. At first, that might sound silly. Of course, you want life insurance until you pass away, so your family has protection.

Term Life Insurance

Typically, insurance agents recommend that, in your 20s, you choose term life insurance. This provides you with coverage for a term of 10-, 20-, or 30-years. Other terms exist, but they’re not typical for purchase. Term costs less in premiums but provides the same coverage as permanent or perm insurance.

Your agent will probably counsel you to invest the difference between the term policy premium and a permanent policy premium. They will tell you how much each would cost.

This saves you money when you’re young and unlikely to die. It also lets you free up funds to put into savings and investments.

Permanent Insurance

Permanent insurance costs more, so your agent will suggest you switch to it during your 30s or 40s. You’ll still obtain a low-cost premium since you’re buying in at a young age.

You can often lock in a premium rate as a 30-something that lasts you until a specific age or death. That means a lot since if you don’t shop around for life insurance, you can end up with expensive premiums that increase with your age. It’s better if your insurance costs are always the same or reduced as you age since people in retirement typically have a smaller income than they did when working.

Contact Us

Contact or visit Alloy Insurance Partners serving Dallas, TX for a life insurance policy that protects your family or another beneficiary by providing financial security.

When is a good time to review your life insurance?

Life insurance is not a one-and-done kind of insurance. You do not need the same amount and type of life insurance at every point in your life. What that means is reviewing the insurance from time to time. But when to review is the question. At Alloy Insurance Partners in Dallas, TX, we have 25 years of experience making sure we protect your assets and your family. 

Changes in your employment are a good time to review your life insurance. Will you be allowed to keep your employer-supplied life insurance if your employment terminates? If the answer is yes, what is the amount and type of insurance, and most importantly, what is the cost to continue it. It may end up being a bad deal and you will be better off replacing it with a new life insurance policy that you buy on your own.  

When you get married, it is time to talk to your insurance agent about any life insurance you have. You may want to change the beneficiary on your policy and depending on whether your spouse is self-supporting or dependent on your income for all or part of their support, you may need to review the amount of coverage you have. 

Once you have children, everything changes and you not only have to think about now but the future. They will be dependent on you for many years to come and if anything was to happen to you, you must provide for them until they are grown.  

Once the kids are grown and you retire, it is time to look at what life insurance you have and what you actually need in this phase of your life. It may be that you really don’t need any or a very minimal amount. 

Contact Alloy Insurance Partners in Dallas, TX when you are ready to review your life insurance coverage. 

Life Insurance Isn’t Just For The Elderly

Talking about life insurance isn’t something most people are comfortable with. It isn’t usually dinner conversation or over a drink at the bar. Most people avoid the thought of it altogether, but it really is too important not to discuss. At Alloy Insurance Partners in Dallas, TX, we have 25 years of experience providing the best products to our customers along with the level of service they have come to expect.  

If you think life insurance is just for the elderly you are very much mistaken. Hopefully, that will be your condition when your beneficiaries collect on your death benefit but in the meantime, there is a lot of life and planning to do. Planning that involves your life insurance should begin at as young an age as you can afford to make the investment. Once you have a full-time job, you may get some life insurance from your employer as a part of your benefits package. When you are young and healthy, life insurance is more affordable than when you get older and are perhaps not quite as healthy. 

One of the most important times to think about life insurance is when you get married and start a family. This is the time of your life when you have need of the protection offered by life insurance. Your children will be dependent on your support for as long as they are still in school, including college and even graduate school. It is important to make sure if anything should happen to you, they will be able to remain in the family home and maintain their lifestyle. 

After your children are grown and settled, your need for life insurance will decrease but perhaps not go away altogether. Life insurance needs can last a lifetime. 

Give Alloy Insurance Partners in Dallas, TX a call when you have life insurance needs. 

who is eligible to be my beneficiary in my life insurance policy?

When it comes to choosing a life insurance beneficiary, the thought of dying becomes fresh. We are forced to think about how our children and parents will live when we’re gone. Fortunately, life insurance makes sure that you give your dependents the best life you can afford in later years. If you are looking for life insurance in Dallas, TX, Alloy Insurance Partners have what you need and more. We help you get the best from your policy and even take you through the process, but there is a problem.

How do you choose and who is eligible to be your beneficiary? Well, this is a personal decision, so our only help is providing you with facts. Here is what you should know about life insurance beneficiary.

People prefer naming family members, but generally, everyone is eligible.

Anyone can qualify to be a beneficiary. Like we said, naming a beneficiary is a personal choice. This is the money you are leaving behind, so it is really up to you to decide who you want to benefit. Some insurance providers in Dallas, TX recommend choosing one or two family members, which is always the case with most life insurance policyholders. Many people buy insurance for the sake of their family members, thats why it makes sense to name one of the members as the sole beneficiary.

Primary and contingent beneficiaries

Life insurance comes with two types of beneficiaries; primary beneficiary and contingent beneficiary. The primary beneficiary is the person who gets the proceeds of the life insurance policy when the insured person dies. A contingent beneficiary, also known as a secondary beneficiary is the person who receives the proceeds if the primary beneficiary dies.

That means that you are allowed to choose two beneficiaries. The policies also allow you to amend the policy like changing the names without the consent of the beneficiaries. For instance, if the primary beneficiary dies before you, you can change and add the contingent beneficiary as the primary beneficiary and find another name to add as contingent.

For more information about beneficiaries, feel free to speak to us at Alloy Insurance Partners today.

What type of life insurance is right for me?

Anyone that is in the Dallas, TX area that would like to protect themselves and their loved ones needs to have proper insurance. One type of insurance that should be considered a necessity is life insurance, which will provide you with financial protection in the event you were to pass away untimely. When you are looking for a new life insurance policy, the two most common options are term and whole life. It is crucial to think of the benefits of each option when figuring out which is right for your situation.

Term Life Insurance

With a term life insurance policy, you are going to receive life insurance coverage for the entire period of the term as long as payments are made on time. There is a lot of flexibility when it comes to picking this form of insurance, which ensures you can get a policy that is right for you. Further, payments tend to be more affordable than whole life.

Whole Life Insurance

While a whole life insurance policy, you can expect to have higher monthly premiums. However, there are additional benefits. With a whole life policy, a portion of your insurance payments will be deposited into an account that will grow in value and can be liquidated. Due to this, a whole life insurance policy can also be considered a form of investment. 

If you are looking for a life insurance policy in the Dallas, TX area, you should call the team at the Alloy Insurance Partners. When you call Alloy Insurance Partners, you can learn a lot more about all of your life insurance options. The team of insurance professionals can help you get into a policy that provides you with the right type and level of life insurance coverage. 

When to Think About Getting Life Insurance

If you’re thinking about life insurance, then you should start researching it now. The sooner, the better. The best time to get life insurance is at birth, but since you’re unable to do it for yourself at that time, then you should look into it now. Alloy Insurance Partners in the Dallas, TX area can help you. We have agents with insurance experience, and we’re ready when you are.

What is Life Insurance?

Life insurance is a policy or contract between you and the insurance company. The insurance company will pay your beneficiaries a specific amount upon your death. In return, you pay monthly premiums to the company. The amount is based on the terms of your policy. It could be $100,000, $200,000, or more. It is also a one-time lump sum payment.

What Types of Life Insurance

Term-Life Insurance — Your premium payments remain the same for a specified period or term. Terms are usually set in 10-year increments. Starting at 10 or 20 years, terms can be extended once it ends. You can always convert it to a whole-life insurance plan or terminate the coverage altogether. The insurance company uses the life expectancy of the policyholder to determine the premium amounts. The person’s age and health also determine it.

Whole-Life Insurance — Provides lifetime coverage, which includes a cash-value payout along with the death benefit. The cash value is more like a savings account. If you pay more than the premium each month, then those funds will basically be set aside earning interest. 

Don’t be willing to let yourself go without life insurance any longer. If you’re in the Dallas, TX area, the agents at Alloy Insurance Partners can help you start the discussion about purchasing life insurance today.